The automaker is spending more than $100 million to expand the McGraw Avenue plant by 65,000 square feet to house two new $30 million glass furnaces. The equipment -- manufactured by Toledo's Glasstech Inc. -- will augment windshield output for Chrysler's 1999 minivans and Neon small cars and rear glass panels for 1999 Jeep Grand Cherokees.

    Combined with plans to build and ship side glass beginning this summer for the new Dodge Durango sport-utility vehicle, the $100-million investment is a giant boost for the plant's future.
"We're dedicated to making this plant world-class and competitive," said William F. Smith, Chrysler's general manager for component operations.

    Chrysler will take another major step toward that goal by signing a technical alliance with industry giant Guardian Industries Corp. of Auburn Hills. Guardian, a specialist in fabricating automotive glass, will provide technical support to enhance McGraw Glass' manufacturing capabilities.

    "We're treating the alliance like a marriage -- we hope it lasts," Smith said. "Over the long haul, all our products and vehicle platforms are going to benefit tremendously from Guardian's expertise."

    Automotive glass manufacturing has become an expensive, research-intensive endeavor. A few companies -- Guardian, PPG Industries Inc., Pilkington PLC's Libbey-Owens-Ford unit and Asahi of Japan -- have survived to dominate the market. General Motors Corp. buys its glass from outside suppliers. Ford Motor Co. owns or co-owns eight glass plants worldwide but, like Chrysler, has attempted to divest some of them to redeploy limited resources to more profitable operations.

    McGraw Glass once supplied glass for every Chrysler vehicle that was assembled in North America. But obsolete equipment, quality woes, high scrap rates and changing vehicle shapes encouraged Chrysler to buy glass from other suppliers.

    While Chrysler's sales growth has allowed the automaker to add 200 jobs at the plant, the United Auto Workers became concerned Chrysler didn't have a research and development arm for glass. To preserve diminishing parts jobs, the union launched a four-day strike in November 1995 to win the latest investment. The plant's current workforce of 1,150 is expected to rise as the factory wins more Chrysler business.

    Armed with new and upgraded furnaces that bolster reliability and quality, UAW leaders foresee that windshield output will climb to 2.3 million by 2001 from under 1.8 million in 1996 and 1.5 million in 1995. They eventually hope to supply glass to other automakers.

    "We feel we can do it cheaper," said one UAW official. "We don't want all of our eggs in one basket." Smith won't rule out future outside business but said the plant's "plate is full for now."

    Plant managers are focused on improving efficiency and minimizing equipment downtime to gain more Chrysler business, such as windshields for Chrysler's large and mid-size cars. The plant's quality levels -- or defects reported per 1,000 pieces -- improved 20 percent last year after a 17-percent gain in 1995. Smith said the plant is on track to reduce problems another 20 percent this year.

    Cost per piece -- a key indicator of operating efficiency and productivity -- declined 7 percent last year and is forecast to fall another 8 to 9 percent this year. A key component of the growth plan is to train workers to become more self-reliant.

    Last year Chrysler spent more than $600,000 with an outside firm to repair furnaces. This year, plant workers learned for the first time to make furnace repairs themselves, as well as relocate a giant furnace and install a new glass-cutting line.

    "From an efficiency and competitive standpoint, we're much better off in the long run if we can rely on our own resources, expertise and problem-solving skills," said plant manager Barry Blalock. "The workforce here has really stepped up to the challenge."

    Chrysler's McGraw Glass plant builds 24-million glass pieces a year valued at about $240 million. The plant was converted to make glass in 1959 in response to a 134-day strike at PPG Industries Inc. that cut off Chrysler's glass supplies. It previously served as stamping plant for Chrysler's DeSoto car line. The facility underwent a $2-million, 124,800-square-foot expansion in 1964, and it was modernized in 1985-88 at a cost of $53 million. Currently it is undergoing a 65,000-square-foot, $100-million expansion to add two new glass furnaces and modern glass-cutting equipment.